Stocks That Could Recover This Week: A Chilly Outlook
Rough Week for Investors, Tougher for Select Cascading Stocks
Cha-ching, but not for everyone, this past week has left deep pockets emptier for most investors, but it's been a real dogfight for a select batch of tumbling stocks. A veritable dozen U.S. exchange-traded companies, each bossing a market cap over a billion dollars, have taken a nose dive by at least 20% this week.
Three Faces of Despair 😖
Marvell Technology (MRVL -8.03%), VF Corp. (VFC -4.67%), and Hims & Hers Health (HIMS -1.81%) are three out of the dozen that have endured a 20% drop this past week, sinkings of 23%, 23%, and 20%, respectively. Ready to dust off the dust and ponder their tumble? Let's dive in.
🌟 Marvell 🚀
The "beat and raise" performance during earnings season could lose its charm when the overall market's headed south. Take, for example, the recent Wednesday expose of diabolical results for Marvell's fiscal fourth quarter of 2025. With revenue for the quarter rising an only slightly better-than-expected 27% to hit $1.82 billion, things looked rosy.
Yet digital dreams didn't materialize. Marvell's performance was inflated by a 78% jump in data center revenue, now contributing a whopping 75% to the top-line mix. Unfortunately, this left a lopsided imbalance in Marvell's biological apparatus. Revenue for the next three largest segments plummeted 35% to 38% from where they stood a year earlier.
Tough Love for Marvell ❤️
That's not all doom and gloom, but given the fact that nearly all but one quarter of Marvell's business thrives on AI-fueled demand for its data center solutions, it's undeniably the fuel powering the stock these days. The near-term outlook is more promising than last week's stock chart, with Marvell's guidance calling for revenue growth to accelerate to 62% in the current quarter, and adjusted earnings to more than double.
A guarded approach has been adopted by Wall Street analysts. Although they're encouraged by Marvell's ability to keep growing its AI business through custom ASIC programs and optical networking, they're treading cautiously in the present volatile market. The stock seems enticing at 25 times forward earnings or a multiple just below 20 if you look out to the following fiscal year.
🌱 VF Corp. 🌳
Brand power alone isn't sufficient to thrive these days, but VF's clothing and footwear platforms make it a hard-to-beat juggernaut. With Vans, The North Face, and Timberland under its corporate wings, VF faces some tough sledding. Revenue has been on the decline for the third straight year, but positive year-over-year top-line gains did emerge in its latest quarter.
Resetting the Clock, Not the Stocks ⏰
VF has unveiled a strategic reset plan, but a recent investor day left analysts unconvinced. The company's ambitious goals include a doubling of its apparel and equipment segments and tripling its footwear revenue. It also anticipates $500 million to $600 million in operating income expansion through cost cuts in sales, general, and administrative expenses and through gross margin expansion.
The Zapper ✈
Wells Fargo has lowered its price target on the shares. Analysts feel that VF's presentation lacked concrete financial updates for the near term and were hesitant in sizing up Vans' prospects for a rebound. Despite this, VF is modestly priced at 18 times analyst profit targets for the new fiscal year starting in three weeks. It boasts three straight quarters of double-digit percentage beats on the bottom line. A respectable 1.9% dividend acts as a cherry on top.
💊 Hims & Hers Health 💊
The higher you rise, the harder you fall. Hims & Hers Health was one of last year's hottest stocks, gaining a scorching 183%. It had more than doubled by mid-February this year, but that rally vanished like a sandcastle in the rain. The company has come under criticism, with ominous clouds on the horizon for its flagship weight-loss platform.
The Prescription Crunch 💊
Novo Nordisk's (NVO -9.88%) Wegovy and Eli Lilly's (LLY -3.83%) Zepbound are popular treatments for folks fighting obesity. These GLP-1 weekly injectables were doing well until demand surpassed their availability. Production bottlenecks opened the door for third parties, including Hims & Hers Health, to create compounded treatments of patented treatments during product shortfalls. Now that Novo Nordisk's production troubles have cleared up, a sizable portion of the business is up in the air.
The Silver Lining 🌟
While the future of its GLP-1 compounding products hangs in the balance, Hims & Hers Health remains a trusted medical solution provider in the realm of telehealth. Consumers continue to rely on its platform for discreet and convenient access to medical solutions. The company's revenue growth is forecasted to continue at a double-digit pace. The doctor is here, and the doctor remains.
- The recent financial performance of Marvell Technology (MRVL) was inflated by a surge in data center revenue, but the trickle-down effect was minimal, as revenue for three of its other largest segments decreased significantly.
- VF Corp. (VFC), with brands like Vans, The North Face, and Timberland, faces steep challenges as revenue has declined for three consecutive years, despite positive year-over-year gains in its latest quarter.
- Hims & Hers Health's scorching rally from last year evaporated in February, thanks in part to production bottlenecks affecting its flagship weight-loss platform.
- Despite the questionable future of its GLP-1 compounding products, Hims & Hers Health continues to be a trusted telehealth provider with double-digit revenue growth projected.
